If you think factoring would be a good fit for you, sign up today or give us a call at 877- 648-3709 toll free. Step 4: Once the payment has been received, the factor pays you, (the seller of the invoices), the remaining 10% less the factoring fee, which typically runs 1% to 3% of the total invoice value. Step 3: The factoring company collects payment over the next 30 to 90 day period depending on your client’s payment terms. Step 2: The invoice factoring company holds the remaining 10% or $50,000 as security until the payment of the invoice or invoices has been received. We will gather all the information to start the process and you will get. The faster we get your request, the faster we can get you the working capital you need to thrive. The first step in the process is to call us and apply for government invoice factoring. For example, if you sell $500,000 worth of accounts receivables and get a 90% advance, you will receive $450,000. Step 1: Call or Apply For Government Invoice Factoring. Step 1: The seller submits their invoices to the factoring company to receive 80% to 95% of the amount of the factored invoices the same or next day. Note: All advance rates and discount rates or fees are agreed upon in advance while being set up. Government contractors deserve a better financing solution than predatory loans and invoice factoring and although its the most affordable option. Bluevines team has extensive experience in financing federal government accounts receivable, which has enabled us to take about a week to fund federal. Once this is taken care of, the factoring company can proceed to fund the business as they would in a standard factoring arrangement. Through an assignment of claims process, the factoring company and the business contracting with the government can assign their invoices to the factoring company through their contracting officer. It will often take 30-90 days to get paid on invoices that the government has approved for payment and this can lead manufacturers and service providers in need of working capital. It is not much different when a business has a contract with the government to provide a product or service. How does factoring work for government contracts?
Once an invoice goes out for a job that has been completed, often there is a still a 30 -90 day wait time before the client pays the invoice. This can be a great way to finance a business. Factoring enables a business to get access to the cash tied up in outstanding accounts receivables through the sale of the receivables or invoices to a factoring company.
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